Asian technology stocks led the market decline as investors questioned whether greater political scrutiny could slow artificial intelligence investment. South Korea's Kospi dropped as much as 4%, while Samsung Electronics and SK Hynix each lost more than 5%. Japan's Nikkei 225 fell nearly 5%, and Taiwan's benchmark declined 3.4%.
Meanwhile, Nasdaq 100 futures pointed to further weakness in US technology shares. Nvidia also declined in overnight trading, extending pressure across the semiconductor industry. Anna Wu, founder of Floodlines Research, warned that Democratic oversight could affect data-center construction, electricity consumption and local project approvals.
The political shift comes as investors already question the cost and potential returns of large-scale AI infrastructure projects.
Chris Weston, Pepperstone's head of research, said the scale of the Democratic victory had prompted investors to reconsider their exposure to risk.
Yet renewable energy companies moved in the opposite direction. Enphase Energy and SolarEdge gained as much as 12%, while First Solar rose 11% and Sunrun advanced 8.7%.
Investors anticipated that Democratic lawmakers could challenge some of Trump's restrictions on clean-energy development.
